Monday, March 12, 2012
I previously blogged about a divided Tax Court decision concluding that the parsonage allowance could extend to more than one home, a decision that generated concern from the ever-vigilant Senator Charles Grassley. Senator Grassley can now rest easy, as the U.S. Court of Appeals for the Eleventh Circuit has now reversed the Tax Court. In Commissioner v. Driscoll, the Court of Appeals concluded that the phrase "a home" in Internal Revenue Code section 107 both as a textual matter and based on the relevant legislative history should be read in the singular. Christian Singer Phil Driscoll and his wife will not, therefore, be permitted to exclude from their gross income the rental allowance for their second home.
Hat Tip: TaxProf Blog (with a chart of the additional exclusion claimed for the second home)